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Shree Balaji Sugars

M.D Message


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Ladies & gentlemen:

It gives me immense pleasure to you all to 3rd crushing season 2016-2017.

After several years of sugar industry in India particularly in Karnataka witnessed some positive changes. The gloom that had pervaded the industry shoed signs of being dispelled. After many years of global & domestic surplus, sugar balance seemed to align with the market.

The tightening sugar balance globally was on account of deficit production of nearly 7 to 8 million tons in sugar season 2015-2016. The domestic sugar production was also in season with the domestic consumption. Sugar production during the season 2015-2016 in India is plgged at 25.1 millions tons. Lower production along with experts is expected to bring down the closing stocks to around 7 million MT in season 2016 from around 9.3 million MT in sy 2015.

The decline in production is mainly caused by crucial drought in the sugar producing states like Maharashtra and Karnataka . which impacted sugar cane availability.

The season 2015-2016 will prove to be defining season in the history of Indian sugar industry.

The government has announced that those sugar mills fulfilling their export obligation and also obligation to supply ethanol will be given subsidy of Rs. 4.50 per quintal of sugar cane crushed during season 2015-2016 and that said subsidiary will be directly transferred to account of farmers affiliated and supplying sugar cane to the concerned sugar mill in discharge of the sugar mills obligation to pay the sugar cane dues.

The measures proved to be crucial as they not only improved the market sentiments but also resulted in much needed resurrection in much needed resurrection of sugar prices.

Last year low rainfall in country. Due to that, this crushing season 16-17 sugar cane production low up to 30% less.

This year season is challenging to sugar industry . Last year my factory crushed sugar cane 4MT. Last year is first curshing season to my factory.

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